Re:Stockton extends its monthly $500 UBI payment experiment
by IanCal on Tuesday June 02, 2020 @03:31PM
(#23395238)
This assumes companies will raise their prices, leave a large margin on top and have nobody try to undercut them.
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Re:Stockton extends its monthly $500 UBI payment experiment
by bhupy on Tuesday June 02, 2020 @03:35PM
(#23395305)
Yup, that too.
Businesses that just raise their prices would be leaving money on the table: namely the poor people that were outside of their total addressable market. Whereas before those folks would never have been able to provide revenue, with more cash in their pockets, they are now potential consumers. Increasing prices just maintains the same TAM for no real reason — you can make more revenue by serving the newly minted consumers.